Barclays downgraded LegalZoom (LZ) to Underweight from Equal Weight with a price target of $6, down from $9. The company faces risks that AI-native tools “may remove friction” and make it easier for demand to move online to other surfaces, the analyst tells investors in a research note. Barclays finds it less clear how LegalZoom’s current market leadership will perform against this backdrop. In addition, the firm believes the company’s growth slowdown and step-down in customer growth in 2026 is likely to be a headwind for the shares.
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